As part of the AISRE 2022 Conference, scheduled in Milan from 5 to 7 September, the paper Fiscal decentralization and efficiency was presented: Empirical evidence from Italian municipalities, made by the collaboration of Giancarlo Ferrara and Valeria Bucci of SOSE Research Department and Giuliano Resce of the University of Molise.
The analysis investigates the association between fiscal decentralisation and the efficiency of the municipality, carrying out an empirical analysis focused on the Italian context.
The analysis of cost efficiency, based on a stochastic frontier approach with fixed effects on the municipality and on the years, for the period 2010-2016, allows to study the degree and evolution of the decentralisation of taxation over time.
The empirical analysis provides convincing evidence that fiscal decentralisation is positively associated with the efficiency of municipalities. This evidence provides the most effective tools for activating public spending policies.
The Fiscal decentralization and efficiency paper: Empirical evidence from Italian municipalities is also published in the series SOSE - WORKING PAPERS which aims to promote the dissemination of the results of research studies relevant to the activities of SOSE and feed the scientific debate.